Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1887-01-22
RECEIVER RICHARDS.
Judge Brewer Settles a Legal Point be-
tween BOndholderS.


From the Commonwealth.
One Of the most important acts or Judge
Brewer. in the United States circuit court
this week, was the appointment OF Hon. D.
II. Richards. of Wichita, as receiver OF
the St Louis, Fort Scott and Wichita rail
way.
Sir. Richards has been the general after
nev of the road for several years, and dur
inc the past six months its vice president,
also acting president since the death OF Ill.
NJ. Hoxie, the regularly elected incumbent
of that Office.
For some six months or more forecloS-
ure suit has been pending on the part OF
about one half of the holders OF the tlrsi
mortgage bonds of the road, while second
mortgage bonds were also held, for com
paIatively small amount. by other parties.
The first mortgage bond holders asked the
court for a foreclosure Of their mortgage
and the appointment of receiver, and, as
thew were entitled to do under its terms,
demanded the en.ire sum due, both prlncl-
nal and interest, though only the latter
was default9d.
This. Of course brought all the first mort
cage bondholders into court. and thereup-
on, the second mortgage bondholderS
brought "A suit Of foreclosure also, upon 4
cross hin. The latter asked for ii decree of
! foreclosure. asked to he allowed to Ray OF!
the former entirely, and to be subrogated to
! all their rights. The first mortgage bond
! holders could do nothing less, Under the
circumstances, than accept these terms.
/ The question of how much was outstanding
/ on first and second mortgage bonds was re-
| ferred 10 the master in Caancery, ii. +.
Dillon. and upon the filing of his report tie
court entered up a decree rs prayed Ter IN
the complaint of both parties and by spec
! ial agreement of all concerned appointed J.
! II. Richards as the receiver. This APP
pointment was satisfactory 10 The
stockholders rs well Is the rest, So thai
| the whole proceedings resulted happily al
around.
The St. Louis. Fl Scott & Wichita was
Incorporated in 1881. The main line l.
| completed from Fort Scott to HaZelton
soulhweSterly from Wichita about lVi
! miles. and will. under the decree Of thu
courts. he finished 10 New kiowa. ca the
! Indian Territory line. in Barber county.
1t also has i branch line from E!Doradt
via Newton to Mcpherson, making in al
some 400 miles. every bit Of which Is oper
| ate9 in connection with the Missouri Pa
tlIlC. ne L.C-titi tAtSAAisS WIN IA si''
alter the general policy of the road or II
extensions. bat averts what promised to he
until recently. very bitter fight Tn,
road runs through a magnificent country
Is we'll known 10 ali Kansas apd has
very bright future. The bonds in question
were all held by eastern and European
capitalists.
An Interesting fact in this connection
that the bond given by hr. Richards, whlei
was fixed BY the court at 100000. wa
made up in Wichita, was signed by nv
citizens Of Wichita. three Of whom an
young men connected with the Wichit
t. Natiousl hank, and that by the oath OF al
FIVE. in justification on the bond, each
: worth S2o0. 000 over and above all legs
liabilities and exemptions These men al
made their money in Kansas within th
I last few years. The bondsnen are: Vi
W. Levy, \ F. NeiderlsrGer. \. ". OH
yer. \. A English and VIM Grieffensiein
! Receiver Richards Was intke city yesterda
but will leave for home today.